You have arrived at the web home of Noah Brier. This is mostly an archive of over a decade of blogging and other writing. You can read more about me or get in touch. If you want more recent writing of mine, most of that is at my BrXnd marketing x AI newsletter and Why Is This Interesting?, a daily email for the intellectually omnivorous.
That threat sent shock waves through the market. Nobody had ever tried to sell that many CDOs or mortgage bonds in public before. A fire sale of that kind threatened to produce something the CDO world had never seen before: "true," undeniable market prices. In theory, that promised to be a very healthy, long-term development. After all, the bankers who had invented structured finance had always claimed to be upholding the virtues of free markets and rational pricing. They were supposed to like transparency. In actuality, though, the prospect of an open auction had terrifying short-term implications. Even at the best of times, forced sales hardly achieve good prices, and by mid-June, conditions in the mortgage market were getting worse by the day.It's just amazing. Those that espouse the values of free markets were doing their best to ensure that CDOs were anything but that.